JR’s POS Depot to Market Optimum & MNS

JR’s POS Depot has selected Hypercom’s “Optimum M4230” payment terminal
and is marketing the “Optimum M4230” multi-application mobile payment
terminal and Hypercom’s “Mobile Network Service” to its customers nationwide, including Signature Card Services. The high-performance, PCI-PED-approved M4230 features
long-range GPRS with dial back-up, the industry’s top security
certification, 32-bit multi-application processing for maximum
transaction speed and 24MB memory that is two to three times larger than
similar products to accommodate value-added applications such as gift
and loyalty programs. Hypercom’s global GPRS network, specifically
designed to securely deliver mobile POS transactions, provides coverage
on more than 200 GPRS networks in more than 90 countries. The advanced
high security POS network features simple, usage-based billing with no
roaming charges, fast and simple Internet-based real-time SIM
activation and 24/7 technical support.

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Wells Fargo Q2 Charge-Offs Hit 11.60%

Wells Fargo reported that second quarter charge-offs soared to 11.60% from 10.13% in 1Q/09, driven by higher bankruptcy filings. However, delinquency (30+ days) edged down from 6.49% in the prior quarter to 6.02% for 2Q/09. Credit card outstandings also nudged up by 1% to $23.1 billion due to lower payments. Wells says it is offering fewer balance transfers and approving fewer balance increases as a result of the weak credit environment. Card fees grew 33% annualized from first quarter on higher volumes, not increased cardholder fees. Linked quarter purchase volume on credit cards was up 26%. Some of
this growth was seasonal, but also reflects increased customer usage and new customer growth, including new private label dealers at Wells Fargo Financial’s retail sales finance business. While credit losses on credit cards remain elevated, the business remains profitable due to its relationship based approach. Currently 15% of Wachovia retail bank customers have a credit card with Wells, compared with 36% penetration at legacy Wells Fargo. For complete details on Wells Fargo latest performance visit CardData (www.carddata.com).

WELLS FARGO CARD LOANS
2Q/08: $19,429,000,000
3Q/08: $20,358,000,000
4Q/08: $23,555,000,000
1Q/09: $22,815,000,000
2Q/09: $23,069,000,000
Source: CardData (www.carddata.com)

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MAY VOL

Debit card volume is now growing by an annual rate of 38%, as “Gross Rupee Volume” (GRV) hit 18.9 billion rupees in May. Meanwhile, credit card GRV has declined at an annual rate of -14%, dipping in May to 48.2 billion rupees. After peaking at 64.4 billion rupees in October, credit card GRV has declined each month, in tandem with the global recession. Debit card GRV also peaked in October at 19.6 billion rupees, but rebounded significantly for the second month in May. According to the Reserve Bank of India, the number of credit card transactions declined 15% in May to 21.5 billion as the number of debit card transactions rose 38% year-on-year to 12.7 billion. At the end of May there were 24 million credit cards and 142 million debit cards in circulation.

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VCT Rolls-Out the Innovative TerrainCard

A new card design has entered the market that adds a degree of perspective and dimension to card designs that was previously not possible. The new “TerrainCard” IL-based Versatile Card Technology can include one or more raised levels with beveled or sloped edges, with elements of the design showing a combined profile of up to .030″ or more above the base surface of the card front. VCT says the first “TerrainCard” project grew out of a collaborative effort between VCT and Stored Value Solutions. The cards hit retail store shelves in June.
VCT is the largest U.S. manufacturer of plastic cards. Stored Value Solutions processes 1 billion transactions for 600 clients and their 580 million cardholders annually.

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U.S. Bank Merchant and CC Volume Remain Lower

U.S. Bancorp reports that second quarter merchant acquiring volume declined 11%
year-on-year to $59.7 billion and that the number of merchants declined 849,626.
However, average credit card outstandings soared by 24% to $14.3 billion.
Charge-offs rose to 7.36% from 6.32% in the first quarter and 4.84% for 2Q/08.
Total credit card volume, including consumer and business cards, declined 6% for
2Q/09 to $19.9 billion. Total debit card volume rose 4% from one-year ago to $9.4
billion. Credit and debit card revenue, corporate payment products revenue and
merchant processing services revenue were lower in the second quarter by 2.6%,
3.4% and 10.0%, respectively, as transaction volumes declined. USB noted that
marketing and business development expense was higher by 21% due to costs related
to new credit card product initiatives. Payment Services contributed $62 million
of the Company’s net income in the second quarter, a decrease of 74.8% from the
same period of 2008 and 36.7% from the prior quarter. The decline year-over-year
was due primarily to a $284 million increase in the provision for credit losses
driven by an increase in net charge-offs and an increase in provision expense
related to credit card portfolio growth, higher delinquency rates and changing
economic conditions from a year ago. For complete detail on U.S. Bancorp’s latest
results visit CardData (www.carddata.com).

MERCHANT ACQUIRING VOLUME HISTORICAL
2Q/07: $62,853,000,000
3Q/07: $63,882,000,000
4Q/07: $62,382,000,000
1Q/08: $64,853,000,000
2Q/08: $66,940,000,000
3Q/08: $66,941,000,000
4Q/08: $58,630,000,000
1Q/09: $57,877,000,000
2Q/09: $59,725,000,000
Source: CardData (www.carddata.com)

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Sterling HSA to Offer the WealthCare Card

Sterling HSA has selected Metavante as its exclusive provider of benefit debit card and healthcare payment technology. Metavante’s “WealthCare Card” will provide account holders with card-based access to their HSAs along with real-time balance information. The Metavante platform also offers a benefits administrator the freedom to choose its preferred HSA custodian when adding the account to the multi-purse debit card. New HSA accounts at Sterling HSA jumped 97% in 2008, with a corresponding 86% increase in dollar deposits. Metavante enables integrated consumer benefit account management of HSA, FSA, HRA, and dependent care and transportation accounts via card-based system.
Sterling HSA is an independent, privately held company offering health savings account administration services to employers and individuals nationwide.

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Avanquest Taps UpClick’s Payment Platform

Avanquest Software is to expand its use of UpClick’s payment processing
platform by leveraging it for traffic generated through email marketing
and search campaigns. Avanquest possesses and promotes 1,500 titles to
consumers through retail, online and direct sales channels. The
UpClick’s free payment processing platform will provide Avanquest Free
Online Payment Processing through PayPal, VISA, MasterCard, Solo and
Switch; Additional revenue from cross-sells through the UpClick network
of partners; and additional revenue from the subsequent network product
exposure. The Avanquest products can generate revenue for through
eligibility for use in cross-selling affiliate promotion thanks to
network exposure. France-based Avanquest is present in North America,
Europe, and Asia and was attracted to the UpClick platform thanks to its
international availability.

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June Card ABS Charge-Offs Set a New Record

Charge-offs among credit card-backed securities hit a record 10.76% in June as the overall delinquency rate declined for the third consecutive month to 5.81%. For the second consecutive month, Moody’s yield index continued to inch higher following yield-enhancing measures taken by many issuers. In June, the yield index rose to 18.52%, a new record for this year. The Index also shows payment rates rebounding to 16.53% in June after a two-month decline. Excess spread, which serves as a proxy for the profitability of a credit card program, also increased to 4.83% in June from 4.42% in May. Moody’s continues to expect a recovery of the credit card sector to begin once charge-offs peak in mid-2010 between 12% and 13%.

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Nebraska Courts Utilize Online Payments

Nebraska’s Administrative Office of the Courts has rolled out online
payments to case types which had a required court appearance. Payments can now be made by
defendants in criminal or traffic cases and by any party to a civil or
small claims case. The service securely accepts credit cards and
electronic check (ACH). Some payments that can now be made using the
courts Internet payment system include alimony payments, attorney fees, property settlements, probation fees and court costs.NIC is the nation’s leading provider of official government portals, online services, and secure payment processing solutions.

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LendingTree Launches a New Promo Campaign

Online lending network LendingTree has launched a new feature rich
website and promotional spots featuring 60’s TV icon Adam West. Some of the new features include:
“MoneyRight”, which allows consumers to aggregate all of their
personal finances and accounts in a single convenient interface; “LookB4ULock”: This feature provides customers with a critical
last-minute check to make sure they are getting the best deal possible
before locking into a loan; “Lender Ratings & Reviews”: A comprehensive, user-generated library
of detailed ratings and reviews for every lender on the LendingTree
network; “Ask the Tree”: Provides users with answers to personal finance or
mortgage-related questions; “Mortgage Checkup”: An easy online checkup to allow anyone with a
home to make sure their current mortgage is “healthy” and “Financial Calculators”, the “Enhanced Mortgage Rate Table”, “My Credit” and
“My Loans”, that lets the borrower review lender matches and customized loan offers online,
including a side-by-side comparison between offers and the option to
sort offers by interest rate and monthly payment. The “You to the Rescue” campaign, narrated by West, features everyday people becoming
superheroes by meeting the challenges of today’s economy and taking
control of their financial destiny. Since inception, LendingTree has facilitated more than 25
million loan requests and $185 billion in closed loan transactions.

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SBOBET & NEOVIA

SBOBET online sportsbook has chosen to implement Neovia Financial
payment processing for its sports betting websites. The independent
global online payments business will support SBOBET operations in Asia
and Europe for its more than 500 sporting events every week. SBOBET is
also about to launch the first ‘Live Dealer’ Casino licenced by the Isle
of Man Government and ‘casino.sbobet’ which will also use NEOVIA to
process payments. Processing will be conducted using the NETELLER
e-wallet and the NETBANX payment gateway. The NEOVIA Payment Suite will
be implemented thanks to its ability to accept direct payments through
single suppliers on a secure platform.

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